Before the bell: Street reacts to earnings (TXN, DD), awaits more earnings (T, MCD, YHOO)
Posted by: in HousingFiled under: Before the bell, Earnings reports, Microsoft (MSFT), Yahoo! (YHOO), McDonald’s (MCD), AT and T (T), duPont(E.I.)deNemours (DD), Texas Instruments (TXN), Economic data, Housing
Stock futures were mostly lower Tuesday morning after Texas Instruments gave a disappointing outlook and as investors awaited earnings from McDonald’s, AT&T and other large caps as well as housing data.
U.S. stocks ended mixed Monday as oil prices hit new record highs and Bank of America reported a 77% profit decline. The Dow industrials losing 24 points, or 0.19%, and the S&P 500 down 2 points, or 0.16% while the the tech-heavy Nasdaq Composite rose 5 points, or 0.21%.
This morning investors will focus on March existing home sales reading. Economists forecast the pace of sales again fell in March despite showing a rise in February. That rise could have been attributed to the largest housing price drop and no one called a bottom to the housing crisis back then. The March data will show if indeed that was the beginning of a trend, but most likely it will show continued decline in the housing market.
With Texas Instruments’ bleak outlook, much of today’s trading will be swayed by the housing data, the outcome of earnings from the massive companies as well as oil prices, which have already set a new record Tuesday of over $118 a barrel. Meanwhile retail gas prices reached over $3.50 a gallon.
Texas Instruments (NYSE: TXN) has reported a 28% rise in first-quarter profit after the close Monday. However, as has become increasingly more common, the chipmaker’s outlook disappointed Wall Street. TXN shares were down almost 2% in premarket trading.
Already this morning, DuPont (NYSE: DD), a Dow component, posted a better-than-expected earnings of $1.19 billion, or $1.31 a share, a 26% increase over the same period last year. Revenue was up 7% to $8.77 billion. Analysts were expecting Dupont to earn $1.28 a share. Not only that, but DuPont mostly reaffirmed its full-year profit guidance.
Two more Dow components, AT&T (NYSE: T) and McDonald’s (NYSE: MCD) are scheduled to report earnings before the opening bell, while the giant portal company Yahoo (NASDAQ: YHOO) is due to report after the close. With Yahoo! having to give an answer to Microsoft (NASDAQ: MSFT) shortly, many see these upcoming earnings report as crucial to the company’s future.
Other than earnings news, Royal Bank of Scotland (NYSE: RBS) said Tuesday it is forced to raise $23.9 billion in new capital to cover its additional losses of $11.7 billion tied to mortgages. Seems banks aren’t out of the woods yet.
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